Global Asset Managers Rethink Diversification With Shobande’s Insights on Merging Advanced and Emerging Markets

Volatile markets, shifting monetary policy and new geopolitical realities are forcing global asset managers to rethink diversification. Corporate finance strategist Aminat Shobande observes that many institutions are quietly rebalancing portfolios toward a more deliberate mix of advanced and emerging economies, with Africa cautiously entering the conversation.

“The old model of treating emerging markets as a single risk bucket is breaking down,” Shobande said. As earlier observed, She notes that sophisticated investors now differentiate among countries based on governance, transparency and macro stability rather than geography alone. “Diversification is no longer about fashion; it is about granular risk analysis,” she added.

She explains that advanced markets still anchor most portfolios, but investors are seeking uncorrelated growth and yield in select emerging economies. “You see a more disciplined allocation to markets where reforms are credible and corporate reporting is improving,” Shobande observed. For her, this creates an opening for Nigerian and other African issuers who can meet demanding disclosure standards.

However, she warns that access is conditional. “Asset managers want depth, liquidity and reliable data,” she said. They are wary of headline risk and sudden policy reversals that can erode returns. “A single arbitrary regulatory action can set a market back years in the eyes of global investors,” she stressed.
Shobande believes that issuers who embrace transparency and robust governance can stand out. “If a Nigerian company reports in a timely and detailed manner, manages currency risk and respects investor rights, it will be seen as a differentiated opportunity, not as a generic frontier name,” she argued. She encourages executives to understand how portfolio managers think about drawdowns, tracking error and regulatory risk.

She also points to the rise of thematic strategies that blend advanced and emerging market exposures around energy transition, digital infrastructure and supply chain resilience. “Global capital is flowing toward long term themes, not just country labels,” Shobande said. “If African assets align with those themes and meet governance thresholds, they can attract patient capital.”

In her view, the message is clear. “Global asset managers are not sentimental; they are analytical,” she concluded. As they redefine diversification, firms and sovereigns that meet their tests on transparency, policy stability and impact will find themselves invited into a new generation of cross border portfolios.